How Do I Handle Salary Calculations When Attendance Spans August 11 to September 10?

Dear All, I have recently joined a new staffing company, and I am new to HR. They are counting the attendance for the contractual associates from the 11th to the 10th of every month. However, I do have one question:

Attendance Calculation for September

1) For the September attendance, we calculated from August 11 to September 10, i.e., 31 days. But according to records, we have to show only 30 days for September.

Can someone please help me by guiding on how to proceed with the salary where we are receiving attendance for August 11th to September 10th and have to pay the salary for 30 days of September 2021?

Attendance and Salary Cycle Clarification

11th of Aug to 10th of Sept (Salary month Sept) is a little bit confusing. The maximum days are in August, and you are paying 20 days' advance salary to the employee.

Generally, these adjustments are done to facilitate time office for payday calculations because it is practically difficult to calculate from the 1st to the 30th and pay on the 7th of every month.

In my opinion, the attendance cycle can be set as per the convenience of your plant/contractor, but the payment should be done timely, i.e., on or before the 7th if the manpower is less than 1000. If the manpower is 1000 or more, then the salary should be paid on or before the 10th of the preceding month.

I think this cycle is legally correct, but you are paying 20 days' advance salary, and I hope you must have some recovery of excess salary paid in advance in case the employee becomes absconding, etc.

I believe there is no law that specifically states salary must be paid for a calendar month. Therefore, any period not exceeding a month is correct.

You are not paying salary for September; you are paying for the August-September period. I am assuming you are paying them by the 17th of September. In that case, you are not paying advance salary for September but paying for a pay period that is different from others.

One problem you may face is with PF and ESIC, where the computation is expected to be for the month.